IMF ascribes market overreaction to U.S. Fed's lack of clarity

06/25/2013 | Reuters

The U.S. Federal Reserve's muddy messaging on when and how it will scale back its bond-buying program is contributing to an overreaction in the markets, the International Monetary Fund said. "Conceptually, [tapering] is not fundamentally very difficult, but there is a problem of communication on how you do it, which is going to create volatility. But the volatility we have seen in the past week is exaggerated," said IMF Chief Economist Olivier Blanchard.

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